The Aggregate Demand Curve Generally Slopes Downward and to the Right

question 14

Multiple Choice

The aggregate demand curve generally slopes downward and to the right because, for any given money supply M a higher price level P causes a ______ real money supply M/P, which ______ the interest rate and ______ spending.

• A) lower; raises; reduces
• B) higher; lowers; increases
• C) lower; lowers; increases
• D) higher; raises; reduces

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Definitions:

Classical Conditioning

An acquisition technique involving the frequent pairing of two stimuli; a response that initially derives from the second stimulus, in the end, derives from the first stimulus alone.

Drug Craving

An intense desire or urge for a specific drug, experienced after exposure to the drug or cues associated with the drug.

Operant Conditioning

A developmental technique that modifies behavior intensity by employing strategies of reinforcement or punishment.

B.F. Skinner

An influential psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.